Best Bankruptcy Attorneys in Roanoke

FAQs

• Where do I file for bankruptcy in Roanoke, Virginia?

  To file for bankruptcy in Roanoke, Virginia, you will need to visit the United States Bankruptcy Court in the Western District of Virginia. The court is located at 210 Church Ave., Room 200, Roanoke, VA 24011. If you have any questions or need further assistance, you can contact the court directly at (540) 857-2391.

• Where can I get bankruptcy forms in Roanoke, Virginia?

  You can obtain bankruptcy forms in Roanoke, Virginia by visiting the website of the United States Bankruptcy Court for the Western District of Virginia. The court's website is http://www.vawb.uscourts.gov/. On the website, you will find a section dedicated to bankruptcy forms where you can download the necessary forms for filing. Additionally, the website may provide additional resources and information to assist you in the bankruptcy filing process.

• What happens to your debts under Chapter 7 bankruptcy in Roanoke?

  Under Chapter 7 bankruptcy, eligible debts are discharged, which means you are no longer legally obligated to repay them. This applies to unsecured debts such as credit cards and medical bills. However, for secured debts, you have the option to surrender the collateral and have the debt discharged, or you can choose to keep the assets (such as your house or car) by continuing to make the loan payments in Roanoke.

• How will bankruptcy affect your credit score and credit report in Roanoke?

  Bankruptcy significantly affects your credit score and report. Both Chapter 7 and Chapter 13 bankruptcies are recorded on your credit report, with Chapter 7 lasting up to 10 years and Chapter 13 up to seven years. Filing for bankruptcy in Roanoke leads to a significant credit score drop, influenced by pre-bankruptcy score, bankruptcy type, and discharged debt. It also impacts your credit utilization ratio, potentially resulting in a lower credit score.

• How can you keep your property when filing bankruptcy in Roanoke?

  To protect your property while filing bankruptcy in Roanoke, you should rely on the state's bankruptcy exemptions. Understand the distinction between exempt and nonexempt property, noting that Virginia only allows the use of state exemptions, except for federal nonbankruptcy exemptions. If filing jointly, spouses may have the opportunity to double the exemption amount. Additionally, retirement accounts like 401(K)s and IRAs are typically safeguarded during bankruptcy proceedings.

• What are the eligibility criteria for filing for bankruptcy in Roanoke?

  The requirements vary depending on the chapter you choose. For Chapter 7, your household's gross income must be below the median income for a family of the same size in your state. Chapter 13 requires meeting specific payment criteria, which may involve prioritizing non-dischargeable debt or demonstrating an inability to repay debts with your disposable income. It's important to consult with a bankruptcy attorney in Roanoke to assess your qualifications accurately.

• How much do bankruptcy lawyers in Virginia cost?

  The cost of bankruptcy lawyers in Virginia typically ranges from $800 to $1,200. However, the specific fees can vary based on the complexity of your case, and experienced attorneys often have higher rates. Although attorney fees represent an expense, they can be worthwhile, especially for complex cases. When selecting a lawyer, it's important to consider factors beyond cost, and it's worth noting that most bankruptcy attorneys offer a free initial consultation.

• What does a bankruptcy attorney do?

  Bankruptcy attorneys help clients understand whether they qualify for bankruptcy and what their best options are. They also prepare and file petitions, answer questions during the proceedings, and educate clients about potential best steps for a positive bankruptcy outcome. Bankruptcy attorneys might also file motions or paperwork if creditors dispute the bankruptcy, or to stop creditors from taking collections actions forbidden by the bankruptcy.

• What happens when you file bankruptcy?

  Bankruptcy is a formal process that individuals, married couples, or businesses can enact when they are no longer able to pay creditors. In a bankruptcy proceeding, filers are allowed to reduce debt to more manageable levels to best pay off money owed.

  Once the bankruptcy process is initiated, debt collectors can no longer seek repayments outside of the arrangements detailed in the bankruptcy settlement. Some forms of bankruptcy result in the liquidation of assets to pay back debts, while others allow filers to retain most of their possessions and investments. Many types of unsecured debt can be managed with bankruptcy filings, but not all.

• Can you file bankruptcy on student loans?

  Under most circumstances, student loans aren't dischargeable and aren't included in bankruptcy proceedings. In rare cases, it may be possible to eliminate student loans through bankruptcy, but only if the courts determine that continuing to pay the loans would impose an undue hardship. Meeting the criteria for undue hardship is challenging, and most bankruptcy filers don't qualify.

• What is bankruptcy fraud?

  Bankruptcy fraud is a blanket term that refers to any kind of dishonest bankruptcy proceeding, which can include:

  • Hiding assets by transferring them to another person or entity
  • Intentionally omitting assets when reporting to the court
  • Destroying or withholding required documents
  • Knowingly making false statements to bankruptcy trustees or creditors

• How long is bankruptcy on public record?

  How long bankruptcy stays on public record depends on the kind of bankruptcy filing in question. Chapter 7 bankruptcy remains on the record for 10 years as there isn't necessarily a repayment component. Chapter 13 bankruptcy remains on the record for seven years as some obligations are repaid following filing based on the terms of a discharge settlement.

• Does bankruptcy clear tax debt?

  Bankruptcy can clear tax debt, depending on the circumstances. Taxes are dischargeable under Chapter 7 bankruptcy, not Chapter 13, and only if the tax debt is:

  • Federal income tax debt related to current properly filed tax returns
  • Honestly incurred with no fraud or evasion
  • At least three years old
  • Assessed at least 240 days before bankruptcy filings

  Existing liens are not eliminated with bankruptcy.

  
  

• Can they take my car in Chapter 7 bankruptcy?

  In many cases, it's possible to keep a vehicle following Chapter 7 bankruptcy. The Chapter 7 Motor Vehicle Exemption allows filers who own their vehicles outright or who are up to date with payments to keep their cars. However, those behind on making car payments are required to arrange a repayment plan. Otherwise, the vehicle may be repossessed as a part of the proceedings.

• How bad is it to file bankruptcy twice?

  Although possible, due to the damaging nature of bankruptcy, filing bankruptcy more than once isn't recommended. Filing multiple times puts a serious burden on one's credit report, making it harder to get a loan, buy a house, buy a car, or even open credit cards.

  Note that filing for bankruptcy isn't something that can be done at a filer's leisure. There are time limits following bankruptcy cases that dictate when it's permissible to file again. For example, after Chapter 7 bankruptcy, filers must wait at least eight years before filing Chapter 7 again or four years before filing Chapter 13.

• Can anyone file bankruptcy?

  Anyone can file bankruptcy, but there are limitations regarding which form of bankruptcy is permissible. Qualifying for Chapter 7 requires a means test that evaluates income, debt levels, and income left over each month after paying basic obligations. Income over the median set by the court and monthly income that allows meaningful payments toward unsecured debt can disqualify filers from Chapter 7, which is generally the preferred form of bankruptcy due to the possibility of a full discharge. Anyone can file Chapter 13 bankruptcy, but the terms are less favorable. In most cases, some debts must be repaid following a successful filing. Chapter 13 is also more likely to result in asset forfeiture.

• How will bankruptcy affect my credit score?

  Bankruptcies are noted on credit reports. How much a bankruptcy might drop a person's credit score depends on how high the score was to begin with, but generally speaking, the hit can be as much as 100 to 200 points. Often scores are already dropping because people filing for bankruptcy may have already missed payments on debts. Chapter 13 bankruptcies are listed on credit reports for seven years from the filing date, while Chapter 7 bankruptcies are listed for 10 years from the filing date. This is because Chapter 13 bankruptcies require at least partial payment of debts owed.

• What are the benefits of filing for bankruptcy?

  Filing a bankruptcy petition causes an automatic stay. This legally stops creditors from taking further action to collect debt, including garnishing wages or foreclosing on property. Going through a bankruptcy successfully means that debts included in the bankruptcy are discharged and don't have to be paid back, except as provided in a Chapter 13 repayment plan. Bankruptcy can help someone recover from financial duress so they can make better decisions and improve financial situations in the future. Disadvantages can include temporary lower credit scores and limitations on spending and financing.

• What's the difference between debt settlement and bankruptcy?

  Debt settlement occurs when people negotiate with individual creditors. The creditor agrees to take a payment that's lower than what someone owes and call the debt “paid in full.” Bankruptcy is a legal process that causes debts to be dismissed after someone proves they don't currently have the means to pay their debts as owed. Typically, someone can't enter into bankruptcy and also settle some debts, because the court would see that as favoring one creditor over another.